HROW - Harrow's Drug Iheezo Is Off To A Great Start

2024-02-19 09:30:00 ET

Summary

• Harrow Inc. is leveraging its existing customer base in the compounded ophthalmic pharmaceutical products business to expand into branded pharmaceuticals.
• The company's first major branded drug, Iheezo, initially faced skepticism but has seen significant success, with December 2023 sales reaching an estimated $5 million, triple the November rate.
• The success of Iheezo suggests that Harrow's distribution platform and customer base can support the success of other branded drugs, potentially leading to a triple-digit share price.

Harrow, Inc. ( HROW ) operates a dominant company called ImprimisRx in the tiny niche compounded ophthalmic pharmaceutical products business, in which two or more drugs are combined to create medications tailored to the needs of ophthalmologists and their patients. Compounded drugs are sold at a low price, so that revenue is modest even though ImprimisRx serves perhaps half of US ophthalmic prescribers. They have a huge customer base, and the company's founder and CEO, Mark Baum, saw an opportunity to further exploit this. His plan is to leverage the company's existing customer portfolio by expanding into branded pharmaceuticals, which sell at premium prices, perhaps 25x the price of an equivalent compounded drug. I first wrote about this here ....

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